Protecting Your Investments through Rental or Condo Home Insurance

Rental homes differ from standard family-owned homes not only on the occupants but also on the type of home insurance the owners get that is applicable for their properties. A standard home insurance policy has basic features that are not suitable for a rental home, as the owners need to consider a second party renting out in his property. The owner should be more concerned with issues on liabilities with their tenants, including rental issues or loss of income from defaults in rentals or damages to the property. Insurance companies have a more streamlined or specific insurance policy for rental properties and apartments that owners could customize for their needs.

Unlike standard home insurance policies which has basic coverage guidelines (unless the owner pays additional premium for inclusion of certain items) rental home policies have many variations. While some provide coverage based on total replacement costs, some rental home insurance coverage only insures properties based on their actual cash values. While some policies only cover a few identified risks or damages like fires or floods, other policies can be arranged to cover more items and have a wider clause on damages. Owners of rental homes and appliances should do their research to look for and compare home insurance offers from various companies and get the best deals applicable for their units and locations.

Unless the apartment or rental units have inclusive furniture and appliance accommodations, the owner should limit their home insurance coverage to the structure and other liabilities and exclude the contents of the property. A good policy should basically include coverage on the structure against an identified peril or cause for damage. It would be better if the policy provide coverage on open-peril basis. The policy should also include coverage for loss of rental income due to damages resulting from an identified peril. Injuries, damages, and medical payments should have liability coverage.


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